Open Europe press summary: 3 April 2009

Europe

Commission investigates case of Italian dentist who used EU funds to buy a Ferrari
The Telegraph reports that the European Commission has confirmed that an unnamed dentist from Consenza, in Italy, is under investigation for allegedly siphoning off cash from the EU's regional development fund, to which Britain contributes. Funds intended to boost the use of solar panels were used to buy the Italian sports car.

Open Europe highlighted the case in its briefing, "100 examples of EU fraud and waste" in November last year. The issue was raised in the European Parliament in a question from Swedish MEP Nils Lundgren. In her reply, Danuta Hubner, the EU Commissioner for Regional Policy, said the Commission had asked Italy for the money back.
Telegraph Open Europe report

NHS not prepared for changes in doctors' working hours from August
The Mail reports on the collapse of 'conciliation' talks in Europe to end the UK's opt-out from the EU's maximum 48-hour working week, quoting Employment Relations Minister Pat McFadden, "We think that everyone has the right to basic protections surrounding the hours that they work, but also the right to choose those hours." EUobserver reports that some minor issues were solved but no real progress was made on the key issues of the opt-out or on-call time.

PA quotes Open Europe's Sarah Gaskell arguing that "it is vital that the UK Government remains intransigent in these negotiations. Some member states are desperate to find a solution to the problem of European Court rulings regarding on-call time, which are threatening to cripple public services across Europe. Currently, all time spent on-call by workers such as doctors, even when asleep, counts as working time. MEPs are holding this issue hostage in order to bully member states into ending the opt-out."

Meanwhile the Telegraph reports that the latest data shows the NHS is not prepared for the changes to doctors' working hours, which are due to be reduced from 56 to 48 hours from 1 August, with a third of doctors currently working over 48 hours. Dr Andy Thornley, Chairman of the BMA's Junior Doctors Committee, warned that "We are also deeply concerned that the quality of training for junior doctors will be threatened."
Mail Open Europe blog Mirror Telegraph European Voice EUobserver DPA

G20 pledges $1.1 trillion injection into global economy;
Raft of new financial reforms agreed on
The leaders of the G20 countries yesterday agreed to a $1.1 trillion injection of financial aid into the global economy, according to the Guardian. The International Monetary Fund's resources are to be trebled to $750 billion, and its Special Drawing Rights will be increased tenfold to $250 billion, boosting the foreign exchange reserves of all its members. The IMF has also been asked to speed up its review of quotas and voices in its representation, to give increased representation to emerging economies.

A series of financial reforms were also agreed on. The Guardian reports that the Financial Stability Forum (FSF) will be renamed the Financial Stability Board and given an increased mandate to oversee banks and markets. The FSF immediately announced that hedge funds would now be required to reveal their debt levels, accounting rules would be re-written to end the 'mark-to-market' practice of valuations, credit derivatives would no longer be sold 'over the counter', news rules on banks' capital requirements would soon be imposed, and credit rating agencies would come under increased supervision.

The WSJ reports that major changes in banking policy may not happen for months because they will need to go through national legislatures.

The G20 also declared that "the era of banking secrecy is over", and threatened to "take action" against countries that did not co-operate to reform their secrecy laws, according to the FT. The Telegraph reports that harsh fines and sanctions will be levied on tax havens that refuse to publish details of their accounts.

The FT reports that President Sarkozy has claimed credit for "immense" progress towards tighter financial regulation, telling the French media that "it is more than we could have imagined". The Guardian also quotes him saying, "Putting hedge funds under supervision isn't going to generate jobs in the textile industry. But we have to put behind us the madness of this time of total deregulation."

However, the WSJ reports that President Obama was crucial in sealing a deal on tax havens between the French and the Chinese and the Guardian describes relations between the two as "frosty", following continued Chinese displeasure at the French meeting with the Dalai Lama last year.

Meanwhile, the FT reports that the G20 communiqué was short on concrete promises on protectionism, and urged a deal to the Doha round of trade talks, without setting a new deadline.
Times Times: Leader Times: Kaletsky WSJ WSJ 2 Mail Mail: Leader Independent Independent: Leader Independent: Warner FT FT 2 FT: Leader FT: Stephens Irish Independent Irish Independent 2 Irish Times Irish Times: Leader Guardian Guardian 2 Guardian 3 Guardian 4 Guardian: Leader IHT Mirror Sun Express Telegraph Telegraph 2 BBC FT: Brussels blog European Voice BBC: Mardell blog EurActiv Summit Communiqué Telegraph: Evans-Pritchard blog WSJ Guardian 5 FT 3 FT 4 European Voice

McCreevy accuses EU of hypocrisy over regulation
In an interview with the Irish Times, EU Internal Market Commissioner Charlie McCreevy has accused EU leaders of hypocrisy for advocating grandiose plans to reform the global regulatory system at high-level meetings such as the G20 while opposing similar reforms in Europe, saying "when member states' leaders...go to big meetings and jamborees, all of them sign up to EU solutions and sometimes worldwide solutions, but when legislation is put in front of them, then strangely, they all go back to their national position...That shows a certain degree of hypocrisy".

McCreevy also warned against the risk of overreacting to the crisis and over-regulating the industry, "During my political lifetime, in these instances everyone has always gone too far in one direction or the other: so if form is to go by, that's what will happen now".
Irish Times

Luxembourg to take steps against inclusion on tax haven "grey list"
Reuters reports that Luxembourg will take steps to get itself removed from the OECD's "grey list", with Prime Minister Jean-Claude Juncker saying "I find the treatment of certain states to be incomprehensible". On the list of financial centres that have committed to - but not yet fully implemented - the "internationally agreed tax standard", are Switzerland and EU member states Austria, Belgium and Luxembourg.Guardian BBC Reuters Telegraph WSJ

Government pulls the plug on regulatory budgets for Whitehall departments
The FT reports that Business Secretary Lord Mandelson has announced that proposals to set 'regulatory budgets' limiting the amount of new regulation each Government department could impose have been shelved. Lord Mandelson said the Government would instead introduce regulatory measures "tailored to the present exceptional economic circumstances".

According to PA, Mandelson said the reason for shelving the budgets is the "economic situation" and he pointed to the need for new regulation "in response to the current banking crisis". PA quotes Open Europe's Stephen Booth saying, "With the cost of UK and EU regulation continuing to rise, this announcement gives completely the wrong signal to businesses struggling to cope with the recession. The UK needs more, not less, robust processes to stem the flow of burdensome regulation."
Times: Wighton Telegraph FT Open Europe blog Open Europe research

Europe to resist Obama's calls for more troops at Nato summit
The Guardian reports that European leaders are expected to resist American pressure today to join in the Pentagon's military "surge" in Afghanistan, disappointing President Barack Obama. The paper notes that the White House appears frustrated with European reluctance. "What we expect and want is for people to look at themselves and make commitments on what they will do," said a senior US official.

"For internal political reasons, we're not in a position to produce massive new troops," said a senior European Union official. "And the scale of a civilian surge needed to match the US military surge is not there yet either."

Today's summit, which marks Nato's 60th birthday, will see France reintegrated into Nato's command structures for the first time since Charles De Gaulle expelled the alliance from Paris in 1966. The meeting will also see Nato grow from 26 to 28 members with the admission of Croatia and Albania.

EUobserver quotes Jamie Shea, Director of Nato's Policy Planning Unit, saying that Nato allies are set to re-affirm what they had promised Georgia and Ukraine last year in Bucharest, that the two countries would join the Alliance once they meet the criteria.

The Independent notes that Danish PM Anders Fogh Rasmussen's bid to succeed Secretary General Jaap de Hoop Scheffer is meeting fierce resistance from Turkey, which objects on the grounds of Rasmussen's refusal to apologise over caricatures of the Prophet Mohamed published in a Danish newspaper.

Writing in Europe's World, Shadow Defence Secretary Liam Fox argues that present funding rules for NATO and EU military missions put an unfair financial burden on pro-active nations like Britain. He urges both NATO allies and EU partners to do their share of the funding and the fighting
Times Independent Guardian NY Times EurActiv European Voice Europe's World: Fox Europe's World: Parkanova EUobserver

European Parliament votes in favour of new anti-discrimination directive
EUobserver reports that the European Parliament has given the green light to a draft directive extending the ban on discrimination against people on the basis of age, disability, sexual orientation, belief or religion outside the workplace, into the areas of education, social security, health care and goods and services. Many centre-right MEPs were against the proposal saying it would lead to too much red tape. The bill is expected to come before member states in the second half of this year, with the forthcoming Swedish EU Presidency recently saying it plans to prioritise the issue. EU Observer HLN

Oireachtas Committee calls for ban on equal airtime for 'yes' and 'no' camps
The Irish Parliament's Committee on the Constitution urged yesterday that the rule demanding equal broadcasting coverage to the 'Yes' and 'No' camps in referendum campaigns should be changed. They said legislation should be amended to avoid the "unreal and impractical situation" compelling television and radio outlets to devote equal amounts of coverage to both sides. Currently, broadcasters tend to use a "stopwatch" principle so both sides get equal airtime, even if the level of opposition is "tiny, is wholly artificial and false", the report said.

The proposed changes drew an angry response from Libertas, which claimed it was "sad" that a committee made up entirely of people who campaigned for a 'Yes' vote would come to this conclusion. However, the Independent Broadcasters of Ireland (IBI) welcomed the report.
Irish Independent

In the Telegraph, Jeff Randall reacts to Europe Minister Caroline Flint's admission that she had not read the Lisbon Treaty, writing "Isn't this what we pay her for? Having claimed £158,000 in expenses, it would have been nice had she done a little homework. There again, why bother? She knows that we will not be offered a referendum on the EU Constitution because it would be rejected."
Telegraph: Randall

Czechs moot 'technical' government run by experts
Euronews reports that the Czech government has announced that it will step down before the end of its EU Presidency, and that it could be replaced by a technical government. Deputy Prime Minister Alexandr Vondra said yesterday that the Presidency had reached mid-term and that "the technical performance was very good but I won't comment on the artistic performance". The parties in the centre-right coalition (ODS, Christian Democrats and Greens) decided, on 31 March, that they would stay to the end of April but that they would step down before the end of the EU Presidency, on 30 June. The government of Mirek Topolánek would then be replaced by a transitional government, made up of technocrats, which will lead the country until the early elections in mid-October.

The composition of the government has not been decided yet and any solution will have to be approved by President Václav Klaus. However, if the scenario is implemented, the EU Presidency will be headed by 16 foreign policy experts and career diplomats: eight appointed by the coalition and the other eight by the opposition Social Democrat party, which launched the motion of no-confidence that toppled the government, on 24 March.
No link

Open Europe's findings on European Commissioners' pay-off packages continue to receive coverage on French and Polish news sites Politique and Pardon.Politique Pardon

Writing on his Guardian blog, Toby Helm notes that "Gordon Brown is no longer every British diplomat's worst nightmare. Now they are worried about what will happen if David Cameron becomes PM". He writes that the Foreign Office is most concerned about the effects of Cameron's European policy.
Guardian: Helm blog

The European Central Bank (ECB) has cut interest rates in the eurozone to an all time low of 1.25% from 1.5%. According to Eurointelligence, the European Central Bank will consider quantitative easing at its May meeting, buying corporate bonds from banks.FT Irish Independent Irish Times Euractiv European Voice BBC Coulisses de Bruxelles FTD Eurointelligence

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